1. Field of the Invention
The present invention relates to a method and apparatus for material requirements planning, and, more particularly, to an on-line method and system for material requirements planning that can be accessed from a web site using a net browser with the program software resident on a central processor server.
2. Prior Art
Material Requirements Planning (MRP) is the technique for determining the net time phased requirement of dependent items parts or sub-assemblies from known (e.g. sales orders) or assumed (e.g. sales forecast) independent demand. A Bill of Materials (BOM) is used to define a relationship between the independent demand items at one level and the dependent demand items at the next lower level. In addition, the BOM also is used as the basis for costing and pulling materials from inventory for released work orders. Typically a general-purpose computer operating under software control carries out MRP planning.
In the last two decades, material requirements planning (MRP) have become a common practice in industry for the purposes of production planning and control. The earlier versions of MRP largely focused on managing materials. The same concepts were applied to labor, another important factor in planning. Beyond labor and material, further applications dealt with equipment, tooling and other resources. These variations gave rise to the broader term, manufacturing resource planning, which is often referred to as MRP II. A general type of solution normally involves a mathematical programming formulation, which allows more flexible modeling of the underlying production/inventory process, and, therefore, can handle a wide range of real-world applications.
The state of the art drawbacks are as follows. A major limitation to the use of math programming solutions is often the large size of real-world problems, even though the advances over the years of computer hardware and software have greatly enhanced our ability to solve large-scale math programming problems. Current MRP processing software is processor time intensive, causing the more complete MRP runs to be done overnight. For example, in the system described in U.S. Pat. No. 5,819,232, each day the current inventory level is read from the inventory transaction system. In addition, all of the open orders are read from the order entry transaction system. The demand forecast is regenerated daily using the algorithm describe described in this patent. This inline xe2x80x9cData processing machinexe2x80x9d approach, as shown, e.g. in U.S. Pat. No. 4,459,663, has continued to propagate itself through out the prior art MRP problem solving approach. See also, the allocation method for generating a production schedule described in U.S. Pat. No. 5,548,518 and the software system utilizing a filtered priority queue and method of operationxe2x80x9d as described in U.S. Pat. No. 6,055,533.
The slowness to accomplish this task in real world time, as described in the prior art, has, and is a principal road block to applying MRP software in a real time environment, such as the Internet, where dynamic modifications of bill of materials (BOM), production scheduling and parts supply change moment by moment. The need to develop a system that can respond to the needs of industry in the above respects remains a significant challenge.
The main objective of the present invention is to provide a MRP in an applications service provider (ASP), environment, and let a business access a software program across a network, rather than running that software on a local system. By outsourcing a company""s software needs, a business does not experience the overhead costsxe2x80x94such as network and computer administrationxe2x80x94associated with technology. Using the present invention, customers pay a monthly fee to have their software hosted and maintained by at a central location.
The invention is implemented over the World Wide Web where licensed software can be provided on an Internet link, and the unique program algorithms of the present invention, as described herein, allow rapid data processing. Further, the system of the invention can be installed simply be logging on to the provider site, thus, eliminating the typical on-site software installation required for complex operating software.
The invention constitutes a Materials Requirement Planning (MRP) system which, comprises an applications software program that insures that all the materials required for the manufacture of product will be available according to a schedule. As is known in principle, MRP systems can include modules that assist in control and monitoring other areas in a manufacturing operation. These include scheduling, ordering, inventory control, shop floor control, job costing, document control, quality control and even job quoting and accounting functions. In essence, an MRP system can electronically track all aspects of a manufacturing operation in addition to insuring all materials are on hand when needed.
Although any company that orders materials can use an MRP system, it is especially necessary for a manufacturer where many thousands of line items may be ordered each day. The essential component of the MRP system invention disclosed herein is unique software that is especially adapted and useful for a Contract Manufacturer (CM), as it will meet all of the specialized needs of a CM. Virtually all electronic contract manufacturers (ECM) with sales exceeding $10M use MRP systems. Smaller CM""s also utilize an MRP system, or at least some sort of material tracking electronic program. The cost of an individual MRP software system is high.
The concept and object of the present invention, as disclosed herein, is to provide a MRP system that is usable and accessible from a web site by CM""s whereby they can avoid the necessary capital expenditure associated with the leasing and installation of a separate software program. In accordance with the present invention, the operating software never leaves the secure central server, and only the information traffic specific to the lessee is seen at the user. In addition to using a more powerful MRP system, the data specific to each lessee is stored in mass memory backup at the server thus providing off site storage of company vital information.
When CM""s are on a shared program as provided by the present invention, many advantages are obtained from both CM and its customer viewpoints. The MRP invention disclosed herein anticipates benefiting from more than just the lease. The CM will derive volume purchase power on components, including the correlative advantage of volume rebates and minimum purchase agreement discounts available from component vendors, thus achieving lower component costs from volume purchases. Another advantage is being part of a system that is characterized with uniform component identification system. Typically, each CM has its own internal part numbering system, but to engage in a cooperative effort, the CM normally would be required to use the part number of the manufacturer and/or manufacturers. This gets cumbersome and only xe2x80x9cstandard or genericxe2x80x9d components are easily added. In the past, using this type of cooperation required the EM to do more work, and thus few CM""s participated.
Using the MRP invention disclosed herein a significant advantage is achieved; the xe2x80x9cworkxe2x80x9d to pool component purchases for volume discounts is automatic. In fact, the availability and accessibility to components is remarkably easier. In addition, multiple AVL items can be added automatically for approval, instead of having to urgently determine an alternate, and obtain approval, if the ECM finds out the approved AVL item is not available. With ECM""s using the MRP invention disclosed herein, the component requirements for all ECM""s are pooled into a single source. This provides volume purchase power from component vendors with attendant volume discounts. The ECM also derives reduced component pricing and the added advantages of sourcing from many more vendors than would otherwise be located by a single ECM. In this respect, an ECM normally experiences difficulties getting quotations to prospective customers for new work. The biggest challenge is to turn out an accurate quote in a short time. For example, to provide a quotation on a Printed Circuit Assembly (PCA) requires requesting component pricing and delivery from multiple vendors. When one considers the hundreds of unique components per PCA, and the multiple quoting vendors, it often takes weeks to complete the component pricing. By using the MRP invention disclosed herein, pooled sources and uniform part numbering enable component pricing to be reduced to a few days. A module of the present invention, called BOM Generation, assigns universal component part numbers and contains all the information from customers BOM, plus the entire AVL. Therefore, the data and information needed can be processed by the MRP invention disclosed herein, can be processed by the ECM, or may even be processed by an OEM utilizing the invention; deriving a base line price for the components for their product. The novel module BOM Generation of the present invention can also provide the OEM with the ability to download the numbering system into their PCB design packages, so that the raw data output can include the base line link into the AVL. In essence, this invention allows a small ECM to get the buying power of a vastly larger ECM regarding both price and availability.
With a network of small ECM""s working off the same uniform part numbering system, this will attract prospective customers. Original Equipment Manufacturers (OEM""s) go to ECM""s to provide the electronic circuit cards (PCA""s). It is often hard for an OEM to provide each ECM with the correct format of information needed for that ECM to quote the work. Utilizing the present invention it is possible for the OEM to provide one format of information, that all quoting ECM""s could utilize, requiring much less work for the OEM. Using the added module of BOM Generation of the MRP invention disclosed herein, allows an OEM to enter its information for a quotation on the xe2x80x9cnetworkxe2x80x9d and, all interested ECM""s in the xe2x80x9cnetworkxe2x80x9d would have the opportunity to quote the work. This not only provides the ECM with sales leads, ready to quote, but also gives the OEM multiple quotations from one request. Specific Business plan targets.
The objects and advantages of the present invention include providing a novel on line MRP system which enables (a) shop floor/inventory control, (b) BOM processing services, both in generating the working BOM for customers for use in the MRP, including the ability to make BOM items in a format that can import back into CAD programs, so that all future designs contain all information to generate the BOM compatible with the MRP directly from the CAD package, (c) purchasing services using the MRP invention disclosed herein thus, potentially eliminating the customers needs to maintain their own purchasing department, (d) integrating vendors selling methods to buyers purchasing methods, (e) integrating vendors quoting (item price and delivery information) methods to buyers RFQ""s, and (f) quoting services to OEM""s through on line customers.